The British car industry can
breathe easy. Car registrations
in Britain for September this year have shown a
morale-boosting 11.3% rise in what is seen as a
clear sign of recovery. According to a report from the Society of Motor
Manufacturers and Traders (SMMT), a trade body, the total number of new cars
registered in September stood at 367,929, which is an 11.3% increase over the
previous year. Interestingly, this is the third month in a row in which car
registrations have been higher than in 2008.
The driving force behind the British car industry's emergence from its
year-long slump is an innocuous scheme called `scrappage scheme', announced by
the Chancellor in the Budget presented on April 22, 2009, following pressure
from the automotive industry which was reeling under the severe effects of
domestic as well as global recession. Dubbed the `cash for clunkers'
program, the scrappage scheme is a voluntary discount scheme under which
motorists will get £2,000 to buy a new motor
vehicle if they opt to scrap their old vehicle.
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